Insights from Catalyst

A secret to purchasing in a successful loan participation is comprehensive due diligence. Thorough due diligence on the loan originator, seller and servicer is essential for any loan participation purchase.

As you may know, the London Interbank Offered Rate (LIBOR) is being phased out in the U.S. and replaced with a new benchmark rate, effective June 2023. As LIBOR’s replacement – the Secured Overnight Financing Rate (SOFR) – becomes more visible, here’s what you need to know.

Catalyst Corporate has reaffirmed its commitment to Cybersecurity Awareness Month (CAM), held annually in October, by signing up as a 2021 Champion to promote the awareness of online safety and privacy.

The first three terms above are probably familiar, but stagflation may be new to some. The word, which merges stagnation and inflation, originated in the hyper-inflationary days of the 1970s. However, this term has been popping up more frequently in recent news. What does it mean and how should we prepare for the possibility of its arrival?

Lower gross asset yields, due to sluggish loan activity, and a prolonged low interest rate environment add up to downward pressure on credit union net worth and net interest margins. The current outlook on short-term interest rates is that they’ll likely remain low for an extended period, while loan portfolio growth is expected to slowly improve. So, what does that mean for the now?